⏫ Apple, Amazon and Meta drive US100

Just before the publication of quarterly reports (after the session), shares of Amazon, Meta, and Apple are rising, signaling investor optimism. These three tech companies are among the largest in terms of market capitalization on Wall Street and have largely contributed to the recent growth of the S&P 500 and Nasdaq indices.

Amazon and Meta shares are gaining over 1%, while Apple is recording a slightly smaller increase of about 0.7%. However, it's important to remember the recent reports from Microsoft and Alphabet, which showed higher-than-expected costs of artificial intelligence development. This might raise some concerns among investors ahead of the earnings releases of other tech companies.

Despite this, in Apple's case, data from TSMC, its main chip supplier, suggest a good quarter. Investors also expect record revenues from Amazon due to the holiday season in November and December and improved margins due to reduced expenditures. Meanwhile, Meta is expected to report double-digit growth, associated with substantial investments in artificial intelligence.

Price Action

After yesterday's drop of over 1.20%, US100 is rebounding today. Initially, the gains were limited to 0.30%, but at the time of publication, we observe an acceleration of the upward movement to 0.70%. Looking at the chart in the D1 interval, we see that the quotes tested the lower limit of the growth channel in which US100 has been since October 2023. Such a reaction is justified in a scenario of continued growth. However, attention should also be paid to the weakening momentum visible on the MACD indicator. If the rebound turns out to be short-term, the most important thing for bulls will be to stay in the growth channel above the level of around 17200 points.

Source: xStation 5